Following the successful completion of the banking sector recapitalization exercise, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has declared that the apex bank's core regulatory objective has officially shifted toward ensuring stronger bank balance sheets directly drive real sector economic growth.
Speaking during a statutory briefing before the Senate Committee on Banking, Insurance, and Other Financial Institutions, chaired by Senator Mukhail Adetokunbo Abiru, Cardoso emphasized that heightened capital buffers must translate into enhanced credit allocation for productive sectors such as agriculture, manufacturing, technology, and SMEs.
The CBN Governor disclosed that Nigerian financial institutions raised N4.65 trillion in fresh capital during the recapitalization drive, with 33 banks fully satisfying the revised capital requirements.
During the session, Cardoso also highlighted key macroeconomic gains achieved in the first half of 2026, including foreign exchange market stabilization where the average exchange rate appreciated to N1,375.40 to the dollar, and external reserves surged to $52.73 billion as of July 9, 2026.
Furthermore, official monthly diaspora remittances increased from $200 million to over $600 million, with the central bank aggressively targeting $1 billion monthly before year-end.
Despite positive indicators showing inflation easing to 15.91 per cent in June after temporary external shocks, lawmakers subjected the CBN leadership to detailed questioning regarding private sector credit flow, rising liquidity management costs, and the accounting treatment of Ways and Means advances.
Cardoso assured the panel that post-recapitalisation supervision will remain intense to ensure financial stability converts into tangible national economic development.
"With recapitalisation now completed, our focus has shifted towards ensuring that stronger capital translates into improved governance, enhanced risk management and support for productive economic activities."
#CBN #OlayemiCardoso #BankingSector #Recapitalisation #NigeriaEconomy #ForexReforms #SenateNigeria
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